Question

Any sum invested at simple interest becomes Rs. 306 at the end of 5 years. If the interest is equal to 9/25 of the principal, then the annual rate of interest is

Answer 1

Step-by-step explanation:

let the principle be x

s.i=9x/25

amount=306

time=5 yrs

amount =principle +s.i

306=(x/1)+(9x/25)

306=34x/25

x=306×25/34

x=225

principle =x=225

s.i=9x/25=(9/25)/225

=81

rate=(s.i×100)/ principle ×time

=(81×100)/(225×5)%

=(36/5)%

or 7 1/5%

required rate=(36/5)%